Foreign Minister S. Jaishankar addressed the ongoing trade disputes between India and the United States, emphasizing the need for the US to respect India’s ‘Lakshman Rekhas’ in any potential trade agreements. He also mentioned that both countries are working to identify common ground on the matter. Speaking at the Kautilya Economic Enclave, Jaishankar conceded that several issues exist between the two nations, with many stemming from the stalled proposed trade agreement. He pointed out that a trade understanding with the US is critical due to the US’s status as the world’s largest market, while also asserting that India’s boundaries should be honored.
Jaishankar highlighted existing issues with the US, largely due to the lack of a concrete outcome in trade talks, resulting in the imposition of specific tariffs on India. He also criticized a double tariff, which he described as highly inappropriate, for targeting India’s purchase of fuel from Russia, a practice also undertaken by other countries, some of which have more contentious relationships with Russia. The relationship between New Delhi and Washington has been under strain since former President Trump doubled tariffs on Indian goods to 50 percent. This also includes a 25 percent extra tariff on Russian crude oil imports by India. Nevertheless, both sides have been working towards a proposed trade agreement after a phone conversation between Prime Minister Modi and Trump.
Jaishankar asserted that a trade understanding with the US is essential due to its position as the world’s largest market and the fact that most other countries have already forged similar agreements. He noted that India’s stance is clear: the country is looking for a common ground that respects its red lines, and talks have been in progress since March. He also stated that the strain in the relationship does not affect all aspects of the discussion.
He stated that there are existing issues that require discussion and resolution. He avoided drawing implications from the issues, while noting that a significant part of the relationship remains as strong as before, if not stronger in some cases. In his speech, Jaishankar stated that the world is experiencing significant changes, with the strategic implications becoming very clear, while international systems and rules are weakening and sometimes even disappearing.